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The credit score is a number based on credit report statistics. It is a brief account of the creditworthiness of a person and it helps determine whether that person is eligible for financing. It also is necessary to determine how well a person is at paying off monthly obligations.

Usually the number of a person’s credit score is based on information on file with certain credit bureaus. It is a number that is often used by lenders such as banks and credit card companies to determine how credit worthy a person really is.

Other companies that use a person’s credit score to determine how trustworthy they are with money include the following:

• Mobile phone companies
• Insurance companies
• Employers
• Landlords
• Internet service providers
• Retail stores

In just about any situation such as when a person applies for a “90 day same as cash” loan to pay off furniture a credit check is often done. This often requires a look at a person’s credit score in order to determine if a person could truly pay off a loan within 90 days.

Interpretations

The most common and most valuable credit score interpretation is FICO. This is a number that typically ranges from 350 to 850. The number 723 is the median FICO score for Americans, and is considered above average/excellent.

Anyone that has a credit score ranging from 620 to 640 is considered a person who has a pretty good credit. Anyone below 620 is considered someone with fair to poor credit.

This FICO number is based on a variety of aspects such as:

• Outstanding debts
• Debt to income ratio
• Number of open accounts
• Number of inquiries

Other types of credit scores used today are the Experian PLUS scores which range from 330 to 830 and the VantageScore which ranges from 501 to 990. The concept is pretty much the same as the FICO number range and it is a measure of a person’s creditworthiness.

You never can be too careful when using the Internet. This is evident in the number of identity theft cases that take place annually-and even daily, weekly, and monthly. This pertains to making purchases as well as using free credit report services and shopping in traditional stores.

Statistics

According to Better Business Bureau and Javelin Strategy & Research, over 9 million cases of identity theft crimes have taken place now for two years in a row. Within the past five years there have been a total of over 30 million victims, as reported by agencies such as the FTC and BBB.

Some more interesting facts you might want to know can help you be safer. Take a look below:

• About 71% of fraud occurs within a week of someone’s personal identification being stolen. Sometimes the crime takes place almost immediately if it is a credit card being used that was stolen.
• Although online identity theft is on the rise, only about 11% of identity theft crimes originate here. Stolen wallets and physical documents make up for about 43% of all identity crimes.
• The breakdown of identity theft cases is as follows (2009): 26% credit card fraud, 18% utilities fraud, 17% bank fraud, 12% employment fraud, 5% loan fraud, 9% government fraud, 13% other. This of course are approximate numbers and 2010 stats are going to be different.

Ways Identity is Stolen

Your personally identifiable information can be stolen in a variety of different ways. Your credit cards and/or credit card digits is one of the most common forms of identity theft. This takes place as fraudulent websites set them selves up appearing as a legitimate company.

This often is the case when ordering a free credit report, which when it is legit can save you from credit card/identity fraud. However, if you enter information into a fake free credit report site you are in trouble, especially if you are entering credit card numbers or other personal data over a server that is not secure. Your financial and personal information is then stolen.

Also, numerous traditional brick-and-mortar stores are sometimes careless about asking for a picture I.D. when a purchase is made. So, when someone uses a stolen credit care it often passes through electronic credit card systems.

However, it is not just physical credit cards and credit card numbers that are stolen and exploited. Driver’s license and social security cards and numbers, birth certificates and birth dates, banking account numbers and checkbooks, and even credit reports are stolen.

Why Identity is Stolen

It is done for a variety of reasons. One of these reasons is to secure a home loan and another is to apply for a job, or to be able to find a way to have a utility or phone line turned on (i.e. using a child’s name). It could be even done to get away with committing a crime.